40,000 People Flock to Loan-Restricted 'Pangyo SK View Terrace'

Despite Hwacheondaeyu Issue, Non-Qualified Subscription at 343 to 1

[Asia Economy Reporter Kim Min-young] Hwacheon Daeyu, which led the Daejang-dong development project in Seongnam-si, Gyeonggi Province, saw over 40,000 applicants for the non-priority subscription of the urban lifestyle housing 'Pangyo SK View Terrace' it implemented.

According to the Pangyo SK View Terrace website on the 8th, the non-priority subscription for 117 unsold units conducted over two days from the 6th to the 7th received 40,164 applications, showing an average competition rate of 343.4 to 1.

Previously, during the main subscription for 292 units, 92,491 applications were received, resulting in an average competition rate of 316.8 to 1; however, 40% of the total supply (117 units) remained unsold. This was due to many people giving up contracts because the availability of mid-term loans was unclear. The average sale price of this complex is 34.4 million KRW per 3.3㎡, ranging from approximately 1.0361 billion to 1.351 billion KRW depending on the housing type. Since all units are priced over 900 million KRW, group mid-term loans are not possible.

A sales representative from SK View Terrace stated, "The bank that will facilitate the mid-term loans has not yet been confirmed, so the possibility of loans is undecided," adding, "If loans are not available, buyers will have to bear at least about half of the total sale price, around 500 million KRW."

Despite issues such as the unavailability of mid-term loans and the Hwacheon Daeyu controversy, the high competition rate for this complex appears to be due to a large number of applicants with low subscription points. Since this complex is urban lifestyle housing rather than apartments, anyone aged 19 or older can apply regardless of home ownership, residence area, or subscription account status. Unlike the main subscription, the non-priority subscription this time allowed applications without a subscription deposit, which is also considered a reason for the high demand.